Chapter 5 Flashcards
(20 cards)
From the Project 5 Homework Assignment – What was the total amount of the Invoice sent to Red Rock Diner before the Credit Memo was applied?
$414.00
Which of the following is NOT a “money out” transaction?
Credit Memo
From the Project 5 Homework Assignment – Activating the Make expenses and items billable automatically includes a markup.
False
From the Project 5 Homework Assignment – What is the total amount on the Purchase Order to Tania’s Nursery in Step 7?
$115.60
In QBO, which items should you mark as Billable?
Expenses you’ve paid for but for which your Customer should reimburse you
When creating a Purchase Order, only Inventory Items can be used.
False
Which of the following transaction types does not effect Accounts Receivables?
Check
Which statement(s) describe(s) the difference between recording expenses on checks and as credit card expenses?
A Credit Card Expense increases the expense account and increases the Credit Card Payable
From the Project 5 Homework Assignment – After completing the assignment, there should be no bags of mulch in Inventory.
False
Which statement below is correct related to using the Pay Bills function in QBO?
Multiple Bills from the same Vendor will be combined and paid with one Check.
One of your vendors decides to change your terms with them from Net 10 to Net 30 for all future bills (but not the ones already issued). Which action(s) must you complete to support this change?
Check the terms list and see if Net 30 is there. If not, add it, and Edit that vendor’s record to change the terms to Net 30.
From the Project 5 Homework Assignment – At the end of the assignment, what is the Open Balance for Tania’s Nursery?
$0.00
Which of the following statements about Unbilled Expenses in QBO is true?
You can change the billable status of a cost by selecting or clearing the Billable check box on a check
Which TWO statements describe the difference between recording expenses on Checks and as Credit Card Expenses?
A Check increases the expense account balance and decreases the bank account balance, and A Credit Card Expense increases the expense account balance and increases the Credit Card Payable balance
Recording wire transfer payments can be done directly in the register for the bank account where the amount was paid from.
True
When entering a Bill for a purchase that was created using a Purchase Order, QBO will remind you that the Open Purchase Order is in the system.
True
Your landscaping company receives a defective fountain pump in its last order from a Vendor. The Vendor issues you a Vendor Credit. What is the effect of the Vendor Credit when you record it in QBO?
The Accounts Payable balance decreases and the expense or COGS account decreases
When recording a purchase of items using a credit card, what account goes in the Payment Account field?
The specific credit card liability account
Which of the following statements is NOT true concerning Billable Expenses?
They must be tracked as income only
From the Project 5 Homework Assignment – At the end of the assignment, what is the Open Balance for Red Rock Diner?
$607.60
